Globecomm Systems to Acquire GlobalSat Division of Lyman Bros., Inc.
24 April 2007
Globecomm Systems, a global provider of end-to-end satellite-based communications solutions, today announced that the company has entered into a definitive agreement to acquire the GlobalSat division of Lyman Bros., Inc.
The purchase price is $18.4 million and is anticipated to be partially funded through a $16 million acquisition term loan, to be provided by Citibank, N.A. The all-cash transaction is subject to the satisfaction of standard closing conditions to provide the financing described above, and is expected to close in the company's fiscal fourth quarter ending June 30, 2007.
GlobalSat is a global provider of satellite-based telecommunications services. Headquartered in Metropolitan Washington D.C., it employs approximately 70 US Government-cleared staff worldwide and has a high concentration of recurring service revenues in the government marketplace. GlobalSat's unaudited revenue for the twelve months ending December 31, 2006 was approximately $21 million, which would have increased Globecomm's data communications services revenue by approximately 68%.
GlobalSat provides complex network solutions for a wide variety of government communication applications. Each solution includes a variety of engineering, project management, integration and network services tailored to meet the needs of specific governmental requirements. GlobalSat's solutions are focused on the network and application areas that are most important to today's government employees who need to communicate from remote locations. These solutions include:
- Fixed / flyaway satellite terminals
- Voice / data support
- Installation services by cleared field technicians
- Associated network services
Their modular solutions are built on common components for quick deployment, ensuring government users can rapidly adopt new technologies with low risk and low total cost of ownership.
"GlobalSat has established a proven track record and reputation in providing high-quality turnkey solutions to government agencies. That, along with the addition of quality managerial and technical bench strength and a strong cultural fit between the two organisations, was the driving force behind Globecomm's decision to move forward with this transaction," said David Hershberg, chief executive officer and chairman of Globecomm Systems. "The majority of GlobalSat's existing revenue stream fits into the company's continuing strategy of increasing our business with government agencies. GlobalSat is synergistic with our existing network services operations and, when combined with those existing operations, this acquisition provides the company with a significant increase in Globecomm's current data communications services' recurring revenue base and is immediately accretive to earnings."
"GlobalSat expands the breadth and reach of Globecomm's offerings in the government market, a market that has been a growth driver for Globecomm," said Kenneth Miller, president of Globecomm Systems. "We believe that adding GlobalSat's business to our existing government business brings revenue growth and access to new opportunities."
"The combination of Globecomm's Network Services subsidiary with GlobalSat's operations creates one of the true complementary operations in the industry," said Bill Raney, president of GlobalSat and chief operating officer of Lyman Bros., Inc. "This transaction opens new horizons for GlobalSat with the additional breadth of Globecomm's resources now available to our company."
